T-0.1 - Act respecting the Québec sales tax

Section 256 Disposition versions

1997-12-19

256. Where a registrant last acquired an immovable for use as capital property of the registrant but not for use in commercial activities of the registrant and the registrant begins, at a particular time, to use the immovable as capital property in commercial activities of the registrant, except where the registrant becomes a registrant at the particular time, the registrant is deemed

(1)  to have received, at the particular time, a supply of the immovable by way of sale; and

(2)  except where the supply is an exempt supply, to have paid, at the particular time, tax in respect of the supply equal to the basic tax content of the immovable at the particular time.

1991, c. 67, s. 256; 1994, c. 22, s. 505; 1997, c. 85, s. 569.

1994-06-17

256. Where a registrant last acquired an immovable for use as capital property of the registrant but not for use in commercial activities of the registrant and the registrant begins, at a particular time, to use the immovable as capital property in commercial activities of the registrant, except where the registrant becomes a registrant at the particular time, the registrant is deemed

(1)  to have received, at the particular time, a supply of the immovable by way of sale; and

(2)  except where the supply is an exempt supply, to have paid, at the particular time, tax in respect of the supply equal to the amount determined by the formula

                        A x B.

For the purposes of this formula,

(1)  A is the lesser of

(a)  an amount equal to the total (in this section referred to as “the total tax charged in respect of the immovable”) of the tax that was payable by the registrant in respect of the last acquisition of the immovable by the registrant and the tax that was payable by the registrant in respect of improvements to the immovable acquired or brought into Québec by the registrant after the immovable was last so acquired, and

(b)  tax calculated on the fair market value of the immovable at the particular time; and

(2)  B is

(a)  where the registrant was entitled to claim a rebate under sections 383 to 397 in respect of any tax included in the total tax charged in respect of the immovable, the difference between 100 % and the percentage prescribed for the purposes of section 386 or 386.1 that applied in determining the amount of that rebate, and

(b)  in any other case, 100 %.

1991, c. 67, s. 256; 1994, c. 22, s. 505.

1992-07-01

256. Where an immovable was acquired by a registrant and the registrant was not entitled, by reason of the purpose for which the immovable was acquired, to claim an input tax refund, or the registrant was deemed under section 258 to have made a supply of the immovable, and the registrant begins, at a particular time, to use the immovable as capital property in commercial activities of the registrant, the registrant is deemed

(1)  to have received, immediately before the particular time, a supply of the immovable by way of sale; and

(2)  except where the supply is an exempt supply, to have paid, at the particular time, tax in respect of the supply equal to the lesser of

(a)  an amount equal to the amount, if any, by which the total determined under subparagraph i exceeds the total determined under subparagraph ii:

i.  the total of the tax that was payable by the registrant in respect of the acquisition of the immovable and the tax that was payable by the registrant in respect of improvements to the immovable or, where the registrant was deemed under sections 258 and 273 to have made a supply of the immovable at an earlier time, the total of the tax deemed under that section to have been collected by the registrant at that earlier time and the tax that was payable by the registrant after that earlier time in respect of improvements to the immovable;

ii.  the total of all rebates in respect of tax referred to in subparagraph i that the registrant has claimed or is entitled to claim under Division I of Chapter VII; and

(b)  an amount equal to the tax that would be payable by the registrant if the registrant had acquired the immovable at the particular time for consideration equal to its fair market value at the particular time.

1991, c. 67, s. 256.